U.S. Chamber Report: Data Centers Average $32.5 Million in Economic Impact

Thursday, June 15, 2017 - 2:30pm

WASHINGTON, D.C. — According to a new report released today by the U.S. Chamber Technology Engagement Center (C_TEC), the average data center adds $32.5 million in economic activity to its local community each year. The report, Data Centers – Jobs and Opportunities in Communities Nationwide, also reveals that during construction, a typical data center generates an additional $9.9 million in revenue for state and local governments.

“Innovation drives our economy, and data centers drive innovation. When communities support data centers, those data centers in turn create jobs, improve local public infrastructure, and encourage skills training for workers and businesses,” said Tim Day, senior vice president of C_TEC. “With the right policies in place, data centers can serve as an important source of economic growth.”

The report shows that during construction, data centers on average employ 1,688 local workers, provide $77.7 million in wages for those workers, produce $243.5 million in output along the local economy’s supply chain, and generate $9.9 million in revenue for state and local governments.

Additionally, during its yearly operation, a typical large data center supports another 157 local jobs and $7.8 million in wages at the data center and along the supply chain. Each year, data centers generate $32.5 million in economic activity within local communities. In addition to property and sales taxes paid directly by the data center, local governments receive an additional $1.1 million per year in individual income and sales taxes.

According to the U.S. Department of Energy, there are three million data centers in the U.S. and more than 90% of the servers are housed in small- and medium-size businesses or multitenant datacenters.

The full report, produced in partnership with managing partner of ndp | analytics Dr. Nam D. Pham, is available here. The study collects financial data of the most recent development projects and 2016 annual income statements of 10 major enterprises and service providers that own 244 large data centers across 16 states. The analysis uses official data and multipliers published by the U.S. government agencies to calculate the economic impacts of data centers on local communities.

The report was released during an event featuring a panel discussion with technology industry leaders. Panelists included RagingWire Data Centers Vice President of Marketing Jim Leach, Pepco Holdings Vice President of Technical Services Miguel Ortega, Measure Director of Data Engineering KC Love, and Credit Junction Chief Strategy Officer Sergio Rodriguera, Jr.

C_TEC was established to advance technology’s role in the U.S. economy. Our members are excited about the future of technology to drive growth, jobs, and life-changing advances in transportation, medicine, consumer experiences, and business operations. C_TEC promotes policies that foster innovation and creativity and sponsors research to inform policymakers and the public.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.
 

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